Calgary Alberta - Canadian Pacific Railway Limited (CP) today announced its fourth-quarter results, including revenues of $2.01 billion, a record low operating ratio (OR) of 53.9 percent, diluted earnings per share (EPS) of $5.95 and record adjusted diluted EPS of $5.06.
 
Fourth-quarter 2020 Highlights

• Revenues decreased 3 percent to $2.01 billion, from $2.07 billion in Q4 2019;
   
  
• OR improved by 310 basis points (bps) to 53.9 percent;
   
  
• Diluted EPS improved 23 percent to $5.95, from $4.82 in Q4 2019, while adjusted diluted EPS rose 6 percent to record $5.06, from $4.77 in Q4 2019.

"With a foundation of strong operational performance and a commitment to controlling what we can, the team continues to deliver. Despite the continued COVID-19 impacts, volumes steadily improved over the second half of 2020 and we saw revenue ton mile (RTM) growth in the fourth quarter," said Keith Creel, CP President and CEO.
 
Full Year 2020 Highlights

• Federal Railroad Administration (FRA) reportable personal injuries declined 22 percent to a record low of 1.11 from 1.42 in 2019, and CP's FRA reportable train accident frequency decreased 9 percent versus 2019 to a record low 0.96 from 1.06;
   
  
• Revenues decreased 1 percent to $7.71 billion, from $7.79 billion in 2019;
   
  
• OR improved to a record low 57.1 percent, a 280 bps improvement year over year;
   
  
• Diluted EPS increased 3 percent to a record $17.97 from $17.52, while adjusted diluted EPS rose 7.5 percent to a record $17.67, from $16.44 in 2019.

"I'm proud to say that our 2020 full year results, including from a safety perspective, exceeded our expectations, in what has been one of the most challenging years any of us have faced. I'm continually impressed by the resiliency of the CP family, particularly those who provide an essential service to North Americans day in and day out, no matter the challenges. The 12,000 strong CP family responded to extraordinary circumstances in 2020 with grit and courage, ensuring that our railway was able to serve our customers, shareholders, and communities," said Creel.
 
Full Year 2021 Guidance

• Double-digit adjusted diluted EPS growth relative to 2020's adjusted diluted EPS of $17.67;
   
  
• High single-digit volume growth, as measured in RTMs;
   
  
• Capital expenditures of $1.55 billion.

CP's guidance is based on the following key assumptions:

• Effective tax rate of 24.6 percent;
   
  
• Other components of net periodic benefit recovery will increase by approximately $40 million versus 2020;
   
  
• "The uncertainty caused by the COVID-19 pandemic dramatically disrupted global supply chains. By leveraging our unique growth opportunities and applying our precision scheduled railroading operating model, CP is continuing to lead the industry. The momentum we've created in the fourth quarter will continue into 2021," said Creel.

CP will discuss its results with the financial community in a conference call beginning at 16:30 ET (14:30 MT) on 27 Jan 2021.
 
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